Auction Results 14 Sep 2019

Domain released their latest preliminary results today. The trends continue to show low volumes but higher clearances than last year, with lower closed sales. Canberra listed 51 properties, reported 40, with 31 sold, 2 withdrawn and 9 passed in, giving a Domain clearance of 74%. Brisbane listed 72, reported 35. with 23 sold, 7 withdrawn … Read moreAuction Results 14 Sep 2019

Banking In Wonderland – The Property Imperative Weekly 14 Sept 2019

The latest edition of our weekly finance and property news digest with a distinctively Australian flavour. What I said to Treasury: Contents: 01:40 US Economy and Markets 07:21 UK Brexit 09:30 Euro Zone Stimulus 13:55 Global Interest Rates 14:37 China 18:12 Australia 18:14 Auction Results 19:25 Property Transaction Volumes 20:27 Price Movements 22:24 Finance Commitments … Read moreBanking In Wonderland – The Property Imperative Weekly 14 Sept 2019

Can AMP save financial advice?

From the excellent James Mitchell at InvestorDaily. The embattled wealth manager has outlined an ambitious strategy to deliver financial advice to more Australians at a time when its competitors are abandoning the sector completely. When AMP announced its new advice strategy last month, including a significant reduction in practice values, the news was met with … Read moreCan AMP save financial advice?

Lenders sought for the First Home Loan Deposit Scheme

The National Housing Finance and Investment Corporation (NHFIC) is starting detailed consultations with lenders regarding their potential participation the Federal Government’s new First Home Loan Deposit Scheme, via Property Observer. The Scheme is scheduled to commence on 1 January 2020. It will be administered by NHFIC, subject to the passage of legislative amendments, which have … Read moreLenders sought for the First Home Loan Deposit Scheme

ASIC makes product intervention order banning short term lending model

ASIC has used its product intervention power to ban a model of lending in the short term credit industry which has been found to cause significant consumer detriment. In its first deployment of this power ASIC targeted a particular business model where a short term credit provider and its associate charged fees under separate contracts. … Read moreASIC makes product intervention order banning short term lending model

Broker remuneration at “lowest levels ever observed”

The Mortgage and Finance Association of Australia (MFAA) has released a report examining the broker channel’s performance over the past six months; via AustralianBroker. The eighth edition of the Industry Intelligence Service Report (IISR) drew on data supplied by 12 major aggregators from October 2018 to March 2019.  While the the broker channel achieved a … Read moreBroker remuneration at “lowest levels ever observed”

Mortgage Data To Jun 2019 (APRA) – Mutuals Alert!

APRA released their quarterly property exposures data to Jun 2019 today. We can see some of the moving parts in the Industry, though only at an aggregated levels. At the top level we can see the impact of APRA first imposing restrictions on investment lending in 2015, and later in 2017 on interest only loans. … Read moreMortgage Data To Jun 2019 (APRA) – Mutuals Alert!

COBA CEOs remind MPs, don’t lose sight of competition

More than 30 CEOs and Directors from customer owned banking institutions will arrive in Canberra today to remind Members of Parliament to keep competition in mind as the Financial Services Royal Commission recommendations are implemented. The leaders of Australia’s customer owned banking institutions and the Customer Owned Banking Association will urge MPs to adopt the … Read moreCOBA CEOs remind MPs, don’t lose sight of competition

ASIC Westpac HEM Battle Is Not Over, Yet…

The ABC, via Michael Janda is reporting that ASIC is appealing the recent judgment which found in favour of Westpac and their use of the Household Expenditure Measures benchmark. This is important because the Federal Court’s decision in the landmark ASIC v Westpac test case on responsible lending laws could mean the poverty line becomes … Read moreASIC Westpac HEM Battle Is Not Over, Yet…

Risk On, Risk Off … The Property Imperative Weekly 7th September 2019

The latest edition of our weekly finance and property news digest with a distinctively Australian flavour. Contents: 1:14 US 2:38 Powell In Switzerland 9:15 US Markets 14:00 Europe 16:49 China 18:32 Australia 19:09 Retail 19:55 DFA FCI 20:45 Trade 21:00 RBA Monetary Policy 22:08 GDP 25:00 DFA and the media 29:00 Property prices and auctions … Read moreRisk On, Risk Off … The Property Imperative Weekly 7th September 2019

ASIC sues Bendigo and Adelaide Bank for use of unfair contract terms

ASIC has commenced proceedings in the Federal Court of Australia against Bendigo and Adelaide Bank concerning unfair contract terms in small business contracts. ASIC alleges that certain terms used by Bendigo and Adelaide Bank in contracts with small businesses are unfair. If the Court agrees with ASIC, the specific terms will be void and unenforceable … Read moreASIC sues Bendigo and Adelaide Bank for use of unfair contract terms

ASIC sues Bank of Queensland for use of unfair contract terms

ASIC has commenced proceedings in the Federal Court of Australia against the Bank of Queensland concerning unfair contract terms in small business contracts. ASIC alleges that certain terms used by Bank of Queensland in contracts with small businesses are unfair. If the Court agrees with ASIC, the specific terms will be void and unenforceable by … Read moreASIC sues Bank of Queensland for use of unfair contract terms

Household Financial Confidence Firms A Tad

Digital Finance Analytics has released the latest in our series of the Household Financial Confidence Index to end of August 2019. The reading this month was just a little higher at 85.45 (85.43 last month), but still well below the 87.69 back in 2015, which was the previous low, and significantly below the neutral setting. … Read moreHousehold Financial Confidence Firms A Tad

RBA Holds As Expected

At its meeting today, the Board decided to leave the cash rate unchanged at 1.00 per cent. The outlook for the global economy remains reasonable, although the risks are tilted to the downside. The trade and technology disputes are affecting international trade flows and investment as businesses scale back spending plans due to the increased uncertainty. At … Read moreRBA Holds As Expected

Suncorp completes Guardian Advice remediation program

ASIC says Suncorp Life and Superannuation Limited (Suncorp) has recently completed a remediation program, which impacted over 4,000 clients of Suncorp-owned GuardianFP Limited (Guardian Advice). Suncorp paid $1,431,167 in compensation to Guardian Advice clients who had received poor advice. Suncorp undertook the remediation program after ASIC imposed additional licence conditions on the Australian financial services … Read moreSuncorp completes Guardian Advice remediation program

Australia records first current account surplus in 44 years

The largest quarterly goods and services surplus on record at $19.9 billion and a narrowing net income deficit to $13.9 billion, contributed to Australia recording a seasonally adjusted $5.9 billion current account surplus for the June quarter 2019, according to latest information released by the Australian Bureau of Statistics (ABS). This is Australia’s first current … Read moreAustralia records first current account surplus in 44 years

Retail turnover falls 0.1 per cent in July

Australian retail turnover fell 0.1 per cent in July 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures. This follows a rise of 0.4 per cent in June 2019. The trend estimate for Australian retail turnover rose 0.1 per cent in July 2019, following a 0.2 per cent rise … Read moreRetail turnover falls 0.1 per cent in July

Mortgage Stress Steady In August 2019

For the first time since 2015 the overall level of mortgage stress did not rise significantly in August, according to the latest research from Digital Finance Analytics, based on our rolling 52,000 household survey. That said, the proportion of households whose cash flow is under pressure when servicing their mortgages remains elevated at 32.1% of … Read moreMortgage Stress Steady In August 2019

AMP Says Property Price Boom Unlikely

AMP Capital chief economist Shane Oliver says the latest resurgence in property prices will be tempered by weak economic conditions and lending constraints. Via InvestorDaily. There are plenty of positive indicators to suggest property prices will soon be booming again. The boost from the election result which removed the threats to negative gearing and the … Read moreAMP Says Property Price Boom Unlikely

Australians paying millions too much for foreign currency services

Australian consumers are paying too much for foreign currency conversion (FX) services because of confusing pricing and a lack of robust competition, a new ACCC report has found. The final report of the ACCC’s Foreign Currency Conversion Services Inquiry highlights important competition and consumer issues affecting individuals and small businesses who use international money transfers … Read moreAustralians paying millions too much for foreign currency services

High Debt, Leverage And Asset Values Concerns The RBA – What About APRA?

The RBA has released its corporate plan. Its a pretty vague document. APRA’s plan, also released, is worse. But, the Reserve Bank of Australia has pointed to Australia’s high debt levels as a factor in its decision making for the cash rate, fearing that it will make the economy more vulnerable to shocks. Just remember … Read moreHigh Debt, Leverage And Asset Values Concerns The RBA – What About APRA?

Are Mortgage Brokers Working For You?

We look at the latest ASIC report on Mortgage Brokers, and the exposure draft of the Best Interest Obligations due to come in next year. What questions should you be asking your Mortgage Broker? https://asic.gov.au/about-asic/news-centre/find-a-media-release/2019-releases/19-232mr-asic-research-highlights-the-importance-of-reforms-for-mortgage-brokers-and-home-lending/ https://www.treasury.gov.au/consultation/c2019-403520 Please follow and like us:

Volcker 2.0 Eases Bank Compliance

The approval by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) of the newly updated Volcker rule will ease compliance with the requirements that prevent banks from engaging in proprietary trading, and, in doing so, would enhance their role as market makers and aid market liquidity, according … Read moreVolcker 2.0 Eases Bank Compliance

It’s Not So Bad After All – The Property Imperative Weekly 31 August 2019

The latest edition of our weekly finance and property news digest with a distinctively Australian flavour. Contents: 1:11 – US Markets 4:25 – Bond Rates 5:29 – Q2 Earnings 6:40 – UK 7:51 – Europe 8:49 – Argentina 9:44 – Australian Section 10:00 – GDP Guidance 11:12 – Home Prices 16:56 – Auction Results 18:16 … Read moreIt’s Not So Bad After All – The Property Imperative Weekly 31 August 2019